Bitcoin ETFs Record Heavy Outflows, Lose $371 million

Bitcoin exchange-traded funds (ETFs) have become a critical pulse check of investor sentiment since the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs in January 2024

Yesterday, the Bitcoin (ETFs) in the United States experienced significant outflows, reflecting the bearish sentiment in the market today

Farside Investors UK revealed that yesterday’s net outflow of $371 million was one of the heaviest days of outflows in recent weeks

This follows a broader trend, with $740 million exiting BTC ETFs over the past two days.

BlackRock’s (IBIT), the largest BTC ETF with $54 billion in assets, led the exodus with a reported $151.3 million outflows,

Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed, exiting with $107.1 million, while smaller funds like Bitwise (BITB) and Grayscale’s Bitcoin Trust (GBTC) saw more modest outflows

This comes after IBIT’s record-breaking $332.6 million withdrawal on January 2, 2025, suggesting a pattern of cooling enthusiasm among institutional investors who fueled 2024’s $37 billion inflow surge.

Analysts attribute yesterday’s flows to several factors. Regulatory uncertainty looms as the SEC delays approvals for newer crypto ETFs (e.g., Solana, Dogecoin) under outgoing Chair Gary Gensler, with a pending transition to pro-crypto Paul Atkins

Despite the outflows, some see resilience. Bitcoin’s price rebounded slightly yesterday, hinting at underlying demand despite the market downturn